NASHVILLE, TENN. (RFD NEWS) — U.S. inflation cooled more than expected in June as lower energy prices helped ease overall consumer costs, according to the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics.
The CPI fell 0.4 percent on a seasonally adjusted basis in June, marking the largest monthly decline since April 2020. Compared to a year ago, consumer prices were up 3.5 percent, down from the 4.2 percent annual inflation rate reported in May.
The decline was driven primarily by lower energy costs. The energy index fell 5.7 percent during the month, with gasoline prices posting a sharp decline after recent volatility in global oil markets. Lower fuel prices more than offset increases in several other categories, including food and shelter. Food prices rose 0.2 percent in June, with grocery prices up 0.2 percent as well.
Core inflation—which excludes the more volatile food and energy categories—was unchanged from May and increased 2.6 percent over the past year, suggesting underlying inflation pressures also moderated during the month.
For agriculture, lower energy prices could provide some near-term relief for fuel-related operating costs, though producers continue to face elevated expenses for labor, crop inputs and financing. The slowdown in inflation may also influence expectations for future Federal Reserve interest rate decisions, an important factor for producers managing operating loans and capital purchases.
The Bureau of Labor Statistics is scheduled to release the July Consumer Price Index on Aug. 12, offering another look at whether inflation continues to move closer to the Federal Reserve’s long-term target.
